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CBR Hike Rates by a Larger-Than-Expected 75bps

RUSSIA
  • Russian central bank hikes rates by 75bps to 7.50%, against expectations of a 25-50bps rate rise.
  • The bank retain their communications that the CBR holds open the prospect of further rate rises at its upcoming meetings.
  • Bank sees annual inflation edging down to 4.0-4.5% in 2022 and will remain close to 4% further on. They also highlight that currently inflationary environment suggests risks to prices are tilted markedly to the upside.
  • USD/RUB sees immediate pressure, falling to fresh 2021 lows and breaking through the 70.00 level in the process.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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